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Figures reveal savings divide in the UK

Figures reveal savings divide in the UK

Category: Savings

Updated: 17/03/2010
First Published: 17/03/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
New figures have revealed a clear savings divide in the UK, with more people meeting their savings goals but many others putting nothing aside at all.

Some 56 per cent of respondents to a survey conducted by Scottish Widows said they had met or exceeded the savings goals they had set for themselves in the last year.

Another 14 per cent said they had narrowly missed out on meeting their savings target.

However, the report shows that savings goals are often set very low, which is reflected by 40 per cent of people saying they are not saving enough in the long term.

The average amount saved by those who are making a concerted effort to put funds aside has dropped in the last 12 months, from £3,466 to £2,641.

Worryingly, the percentage of people admitting to making no savings provisions at all in the last year has almost doubled, from 20 per cent to 37 per cent.

More than half (52 per cent) of those with no savings said a low income left them with no option to save, while a third (36 per cent) said they were concentrating their financial efforts on paying down debts.

Ian McGowan, savings expert at Scottish Widows, said: "We believe there is a need to retain a long term commitment to improving the capacity of consumers to better understanding their financial planning needs.

"Surveys repeatedly show even where consumers are aware of their needs, the extent to which they understand how to act upon them is a major shortcoming."

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